Passive Investor Tips is a weekly series hosted by full-time passive investor and Best Ever Show host, Travis Watts. In each bite-sized episode, Travis breaks down passive investor topics, simplifying the philosophy and mindset while providing tactical, valuable information on how to be a passive investor. The future is impossible to predict, so the best we can do as investors is to do our due diligence, be conservative in underwriting, and know that potential returns are never promised nor guaranteed. In this episode, Travis discusses three categories of risk when it comes to investing and why it’s so important to determine your risk tolerance before diving in.